 |
|
Suzlon Energy, a prominent player in the renewable energy sector, witnessed a significant drop in its share price on October 3rd, following advisory warnings issued by both the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE). The warnings stemmed from Suzlon's non-compliance with regulations set by the Securities and Exchange Board of India (SEBI).
On the NSE, Suzlon's stock price plummeted by 4.61 percent, reaching an intraday low of Rs 76.06 per share. This decline marked a continuation of a downward trend observed over the preceding six days, resulting in an overall drop of 8.71 percent. The stock opened the day with a gap down of 3.76 percent and continued its downward trajectory throughout the trading session.
The BSE and NSE issued their warnings to Suzlon after investigating the company's handling of disclosures related to the resignation of Independent Director Marc Desaedeleer. The exchanges highlighted a breach of SEBI's Listing Obligations and Disclosure Requirements (LODR) in this matter. Furthermore, they identified a violation related to an analyst and investor call held on June 9th, 2024, which was conducted without the required two-day advance notice to the exchanges.
Despite these setbacks, Suzlon has assured investors that the non-compliance issues will not have a detrimental impact on its financial or operational performance. The company has been demonstrating strong performance in recent times, with its profit after tax (PAT) tripling to Rs 302 crore in the June quarter, driven by higher revenues.
Despite the recent challenges, Suzlon remains a prominent player in the global renewable energy sector, boasting an installed wind energy capacity of 20.8 GW across 17 countries. Notably, Morgan Stanley, a global brokerage firm, downgraded Suzlon's stock to 'equalweight' from 'overweight' while simultaneously raising its price target to Rs 88 per share, reflecting an 8 percent upside from Thursday's closing price.
Source: Suzlon shares fall nearly 5% after NSE, BSE issue warning for non-compliance